Insights into Low Wage Growth in Australia

James Bishop and Natasha Cassidy
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Natasha Cassidy: Reserve Bank of Australia

RBA Bulletin (Print copy discontinued), 2017, 13-20

Abstract: Recent low wage growth in Australia appears to be only partly explained by spare capacity in the labour market, the decline in inflation outcomes and the decline in the terms of trade from its 2011 peak. In this article, we present some tentative evidence that the relationship between wage growth and labour market conditions may have changed, and that this may help to explain recent low wage growth. Using job-level micro wage data, we also find that, since 2012, wage increases have been less frequent and wage growth outcomes have become much more similar across jobs.

Keywords: wage growth; spare capacity; unemployment; job security; micro data; terms of trade (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (12)

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